07 May Discussion 1&2
DISCUSSION WK 2-1 -1page only
“Union Pacific Corporation” Please respond to the following: -CITES SOURCES
- Perform an analysis of the social / demographic, technological, economic, environmental / geographic, and political/legal / governmental segments to understand the general environment facing Union Pacific.
- Describe how Union Pacific will be affected by each of these external factors. PLEASE WRITE IN YOUR OWN WORDS
- EXAMPLE OF DISCUSSION 1-2 THIS IS A GREAT ONE
Union Pacific Corporation was incorporated in 1969 and is the leading rail transportation in America. Their HQ is located in Omaha, Nebraska.
Social / demographic: Union Pacific 2016 report show that they hired 4 percent more women into their management program, increased the rail safety awareness by reaching 32 million of people, providing emission reductions and volume reductions, received an A rating on the Carbon Disclosure Project Employee Resource Groups (ERGs) represent minorities, veterans and women to create a diverse workforce (Union Pacific, 2017).
Union Pacific Railroad is one of the US recognized companies connecting 23 states, two- thirds of the country by rail; operates from major ports; West Coast and Golf cost and it connects with Canada’s rail system, as well as, being the only railroad that provide services to all Mexico gateways . Union Pacific provides business that includes Agricultural Products, Automotive, Chemicals, Coal, Industrial products and Intermodal (PRNewswire, 2017).
Technological: UP uses DPU (distributed power units) to operate in the middle and in the end of the trains instead of having only in the front end. This technology reduces the physical force of the train and a fuel savings of 4 to 6 percent compared to standard power. They also created Genset technology that uses several smaller engines and generators instead of a large single one. This technology is now being used in America and around the world by railroads. There are several other technologies that are being used by UP as their main goal is to continuously research ways to develop technologies that will help reduction of emissions (Union Pacific, 2017).
Economic: As the economy continues to flow, Union Pacific is planning to execute their value strategy by using technology and innovation to improve customer experience and driving resource productivity. Top goal for Union Pacific is their margin targets and creating a long term enterprise value for all stakeholders groups (Union Pacific, 2017).
Environmental / geographic: Union Pacific transport one ton of freight 456 miles on a single gallon of diesel fuel; they are four times more fuel efficient than any truck. Union Pacific reported that a single train can carry as much freight as 300 trucks. Part of UP vision and environmental policy is to protect the environment and be recognized as environmentally responsible transportation leader. They have received the Chairman’s Environmental awards for 24 consecutive times since 1993 up to 2016 (Union Pacific, 2017).
Political/legal / governmental: Union Pacific is in compliance with all state, local, and federal applicable laws. They provide compliance reports to all levels of government like the Federal Election Commission, as well as, it is actively participating in policy making and political process (Union Pacific, 2017).
Describe how Union Pacific will be affected by each of these external factors.
Aging infrastructure, self-driving trucks, and future generation technology can result on threats to UP, as it is described in the SWOT analysis conducted by Market Mad House. Technology can not only create competitive environment by creating faster and efficient alternatives that UP will have to compete with (technology). Environmental legislation can require purchase and construction of costly infrastructure (environmental). Governmental changes in laws to use railroads to carry more passengers’ trains could cause major delays to deliver products in a timely manner. Government can also use UP lines for high-speed corridors, which is already under construction in California. However, all these threats can be mitigated by great leadership which UP is well known for having (Market Mad House, 2018).
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